How Far Could the Stock Market Plunge? 1 Indicator May Hold the Answer.

Regardless of how long you've been putting your money to work on Wall Street, 2022 has been a challenging year. Since the first week of January, which is when the iconic Dow Jones Industrial Average (DJINDICES: ^DJI) and benchmark S&P 500 (SNPINDEX: ^GSPC) hit their all-time highs, both indexes have tumbled into correction territory with losses exceeding 10%.

Meanwhile, the tech stock-driven Nasdaq Composite (NASDAQINDEX: ^IXIC) has performed even worse. After hitting a record high in November, it's fallen as much as 31%. This puts the Nasdaq firmly in the grips of a bear market.

Taking into account the heightened volatility and unpredictability that often accompanies bear markets and steep corrections in the major U.S. indexes, the big question on investors' minds is simply this: How far could the stock market plunge?

Source Fool.com